Ms Fiona Chiew, Deputy General Manager of Messe Frankfurt (Shanghai) Co Ltd was pleased with the first Automechanika show in Vietnam. She said: “We want to express our thanks to our co-organisers and all the support we have received to make this show a reality. This fair was successful in bringing together all elements of the regional automotive industry. This has been a great start to Automechanika’s journey into Vietnam and provides a more comprehensive exhibiting profile, with a good blend of international and local exhibitors. Holding the next Automechanika event in Ho Chi Minh City allows the industry’s top players to network, discuss trends and share market information.”

Vietnam is next big hotspot for automotive industry and aftermarket in ASEAN region

The automotive market in Vietnam has been developing quickly in recent years. This is due to a surge in the country’s economic development. Residents of Vietnam are enjoying a higher living standard and more expendable income to purchase automobiles because of the stronger economy. With more vehicles in the country comes a higher need for aftermarket services.

As the next big hotspot for the automotive aftermarket, Vietnam is seen as a key growth country for many corporations looking to invest. The time is ripe for international brands and industry players to expand their coverage into the country. Exhibitor Ms Valerie Poon, General Manager of Malaysia’s Lion Petroleum Products SDN BHD said: “Vietnam is a gateway for us to expand our business into the ASEAN countries; it’s a very vibrant region. Vietnam is a key member of the region and it’s one of the main growth areas, along with Cambodia, Myanmar and Malaysia. We really want to be a part of this journey.”

Exhibitors and visitors pleased with new show, location and automotive market

The goal of Automechanika Ho Chi Minh City is to allow both global and domestic aftermarket players the ability to network and do business under one roof. This allows for the expansion of business connections, enriching commercial networks and developing more business opportunities and partnerships. There was a high level of interest in this inaugural show from overseas exhibitors, with 89% of all exhibitors coming from outside Vietnam. Many international brands are eager to tap into this bustling market. Key players saw the value in this debut show, including Continental Automotive, CTR, FUNTORO, HWASHIN, KENDA, MANN+HUMMEL, Motul, OWS and Zhongce.

This show has provided overseas exhibitors the opportunity to showcase their latest products and solutions to the Vietnamese market for the first time. Singapore exhibitor Mr Warren Quek, Sales Manager, Automotive Aftermarket APAC, Continental said: “The Vietnamese market is a pipeline for our business to further penetrate and tap into. Due to the growing middle class and fast-developing economy here, the demand of automobiles grows, along with a huge need for replacement parts and aftermarket services. The response we received during the fair was promising. There is a good mixture of international and local visitors. Several local buyers have shown great interest in our products.”

Automechanika Ho Chi Minh City also gives domestic brands the chance to reveal their local developments to the world. An exhibitor from Vietnam, Mr Le Heong Thinnh, Deputy Director, Hui Thinh Company said: “Participating in Automechanika Ho Chi Minh City has widened my global vision to the automotive industry. The fair is a fantastic platform to meet other industry players, not only from Vietnam, but also from many other countries. We are able to exchange ideas and information about trends and learn from each other. Overseas visitors and exhibitors showed a keen interest in our products and services and some have requested immediate follow-ups. I am sure we can build a partnership from the connections we initiated during the event and they will lead to business opportunities.”

For visitors attending the show, the opportunities are also plentiful. For those tapped in to the value of the Vietnamese market, this is the time to become a part of what the region has to offer. Automechanika Ho Chi Minh City 2017 offered overseas visitors a favourable chance to meet with the local key players. Buyer groups were also organised for the show, which included more than 50 delegates from five countries, including China, Italy, Korea, Myanmar and Thailand.

Singapore visitor, Mr Ronald Tan, Marketing Manager of J-Focus PTE Ltd said: "I came here for business connections with local spare and repair parts suppliers as I am setting up a new business here in Vietnam. It is definitely worth a visit here as there are a good number of manufacturers bringing a wide range of quality products. The connections established and the suppliers I have identified here are useful for my business, thus keeping myself updated on what is new and what the market has to offer.”

Local visitors were able to see the show as a unique platform of sourcing and to learn about global trends and market information from international industry players. Vietnamese visitor, Mr Vincent Dang Khoat Hai was searching for auto painting products and coating solutions at the fair. He said: “I am impressed by the international exhibitors the show gathers. There are brands from different countries and they bring high quality products to the fair; the showcase at the Malaysian pavilion has particularly aroused our interest. The auto coating products from Malaysian companies are eye-openers and are very suitable for our customers. We will immediately follow up with the potential suppliers we have identified here and plan to place orders with them in the next few months.”

Plentiful industry endorsements ensure success of first-time show

Messe Frankfurt, Chan Chao International Co Ltd and Yorkers Exhibition Service Vietnam received extensive support for Automechanika Ho Chi Minh City 2017, which speaks volumes to how important this show is to the Vietnamese automotive aftermarket. There were several key supporters for the 2017 edition, including: The Federal Association of the Manufacturers and Importers of Automobile Service Equipment (ASA), German Federation for Motor Trades and Repairs (ZDK), International Cooperation Committee of China Auto Maintenance Equipment Industry Association (CAMEIA), Taiwan External Trade Development Council (TAITRA), Taiwan Transportation Vehicle Manufacturer’s Association (TTVMA) and Vietnam Rubber Association (VRA).

Mr Richard Wu, Senior Specialist – Business Development of TTVMA said: “We, and our members, have participated in many Automechanika fairs and we have had good results every time. Through participating in the Automechanika platform, we are looking forward to expanding our networks with local industry players, particularly Vietnamese distributors and buyer groups, who can help our members to bring in more auto parts and components into this high-potential market.”

CAMEIA Vice Secretary General, Mr Steven Wang said their organisation is in a unique position to help not only industry players within Vietnam, but also in China for a mutually beneficial experience. He explained: “Being one of the drivers in the China automotive and aftermarket services industry, we are very happy to extend our support to Automechanika fairs. Given the emerging market of Vietnam, we promoted the fair within our association. The SEA and ASEAN markets offer great potential, together with China’s geographical advantage of being a close neighbour to the SEA countries; we are seeing that China industry players and corporations are in a good position to support the industry development in the region. Participating in Automechanika Ho Chi Minh City 2017, we have achieved our business goal of promoting products and local expertise from China to the Vietnamese market. From a visitor standpoint, our visiting members found it to be a fruitful visit in order to retrieve local market information and understand market needs.”

With the goal of shining a light on the Vietnamese market, Automechanika Academy was held during Automechanika Ho Chi Minh City. Given the bright future of the Vietnamese automotive aftermarket, industry experts shared their knowledge in an educational platform. There were seven seminars during the show ranging from topics on supply chain, investment and the legal environment of the Vietnamese marketplace and sales & marketing, to competitiveness and economic integrations.

One of the highlights was “The Master plan of Vietnam automobile industry”, which explained the highlights, mechanisms and policies to implement, actual status, challenges and opportunities of the automotive industry in Vietnam. Mr Tan Cong Vu, Vice General Director of Vietnam Daewoo Bus Co Ltd led the event. Regarding the seminar, Mr Vu said: “The automotive industry in Vietnam has a huge space for growth and we want to attract more overseas investment in the automotive support industry in the country. This seminar provides a good chance for us to give a guideline and detailed information about how to get support from the local government for industry people or investors who don’t know about the current market status in Vietnam. The seminar also gives us an opportunity to network with people who want to work with us.”

Fringe programme attendee Mr Harry Chan, Overseas Marketing Manager – Carsyso (Shenzhen) Technology Co, Ltd has had his eye on the Vietnamese market and came to the show from China to get more insight into entering the market. He said: “The Vietnamese market is one of the major areas where our company has been looking forward to further expanding. I found the topics shared in the seminar offered me useful information about the local market, helped to deepen my understanding of the industry and the upcoming market development trend in the region.”

The Automechanika brand continues to build its fair network and Ho Chi Minh City is one of the latest stops on the worldwide tour. Automechanika Ho Chi Minh City is fulfilling a need in a burgeoning automotive industrial market. The success of the first show is confirmation that the market will continue to grow and the show will continue its role in that forward movement and evolution.

Speaking on his choice to join the inaugural exhibition, Mr Alpay Öztürk, Chief, Fairs and Promotion Department, General Secretariat of Uludağ Exporters’ Association, Turkey said: “Vietnam is a huge market with a population of more than 90 million people and has an enormous potential to develop rapidly, increasing automotive investments and low passenger car density per person. It is expected that automotive investments and production will increase swiftly in the near future. Exhibiting in this first edition, I found it was a good opportunity to explore the Vietnamese market onsite, search for cooperation and trade opportunities between Turkish and Vietnamese Automotive companies and identify if the exhibition has enough potential for a Turkish National Participation in the next editions. Automechanika Ho Chi Minh City is the best of all in terms of visitor quality and number. It has the potential to enlarge in a short period of time.”

The next edition of Automechanika Ho Chi Minh City will be 25 – 27 April 2018 at the Saigon Exhibition and Convention Centre in Ho Chi Minh City, Vietnam. Show co-organisers Chan Chao International Co Ltd and Yorkers Exhibition Service Vietnam were very happy with the results of Automechanika Ho Chi Minh City’s premier. Ms Judy Wang, Executive Director of Overseas Department of Chan Chao International Co Ltd said: “Our cooperation with Messe Frankfurt to bring this exhibition to fruition was a world-class partnership. We are very pleased to be a part of the successful development and culmination of what is becoming the leading regional trade fair for the automotive services industry for Vietnam and nearby countries by two of Asia’s trade fair market leaders.”

Messe Frankfurt is the world’s largest trade fair, congress and event organiser with its own exhibition grounds. With some 2,400 employees at 30 locations, the company generates annual sales of over €640 million. Thanks to its far reaching ties with the relevant sectors and to its international sales network, the Group looks after the business interests of its customers effectively. A comprehensive range of services – both onsite and online – ensures that customers worldwide enjoy consistent high quality and flexibility when planning, organising and running their events. The wide range of services includes renting exhibition grounds, trade fair construction and marketing, personnel and food services. With its headquarters in Frankfurt am Main, the company is owned by the City of Frankfurt (60 percent) and the State of Hesse (40 percent).
For more information, please visit our website at: www.messefrankfurt.com.

Background information on Chan Chao International Co Ltd and Yorkers Exhibition Service Vietnam

Chan Chao is the leading Taiwan-based international exhibition organiser and has achieved outstanding feats in organising high-technology, machineries as well as consumer-oriented exhibitions. Over three decades, Chan Chao has extended flagship brands into Bangladesh, Cambodia, China, Myanmar and Vietnam with their professionalism. Yorkers is the subsidiary office of Chan Chao in Vietnam.